SpaceX said it has agreed to buy a nationwide spectrum portfolio from Grain Management, a move that would strengthen Starlink’s position in the U.S. telecommunications market. The transaction is still subject to approval by the Federal Communications Commission.
The company said the deal covers a license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band. SpaceX described the low-band spectrum as a way to close one of the remaining technical gaps and help Starlink Mobile become a major mobile carrier in the U.S. CEO Elon Musk called the agreement a “very big deal” in a post on X.
The announcement hit shares of AT&T, Verizon and T-Mobile on Friday, while SpaceX stock rose about 2%. Last week, T-Mobile, AT&T and Verizon formed a joint venture focused on expanding coverage in underserved areas through satellite and direct-to-device (D2D) services, notably without Starlink.
TMF Associates expert Tim Farrar said the move adds to the battle between SpaceX and mobile operators. He also cautioned that the spectrum position remains limited and that SpaceX would likely need ground towers to achieve reliable building penetration in urban areas.
The news came a day after the Federal Communications Commission said it would vote on a proposal to auction 25 megahertz of “prime spectrum” to support D2D services from satellites to smartphones. The FCC also said it would vote on Oct. 29 to seek public comment on making an additional 482MHz of spectrum available for supplemental coverage from space and on updating its rules for D2D services in licensed spectrum.
SpaceX, which went public in June in a record IPO and is now valued at more than $2 trillion, has relied on Starlink as its cash-generating and only profitable business segment so far. According to its second-quarter report, the service was available in 205 countries and had 12 million subscribers as of June 30. The connectivity business generated $4.29 billion in revenue and $1.66 billion in operating income during the period.
